ESD Programme

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Kick-starting Black Local Suppliers1

As part of supporting the establishment and the participation of black players in the industry, our Supplier Development Pilot Programme was introduced, leading the establishment of four local black owned companies. Operating mainly in Mossel Bay, these are Siyakhona Scaffolding (Pty) Ltd; Sophumelela Painting (Pty) Ltd; Metamorphic Engineering Services CC; and TJ&H Fire Services. The four entities were provided with business support - mainly through preferential procurement, financial support and skills development. Today, three of these entities are major players that have created a total 439 sustainable job opportunities. They continue to receive business development support with the intention of helping them grow their markets and operate as medium size players in the industry.

The ESD Incubation programme includes 15 Small to Medium Enterprises (SMEs), Qualifying Small Enterprises (QSEs) and Exempted Micro Enterprises (EMEs) that are 100% black owned and managed and provide various goods and services to PetroSA. The programme has a broad national footprint, operating across the provinces of Gauteng, KZN, Eastern Cape and Western Cape. Given PetroSA’s operating footprint, the majority of support (developing technical skill; facilitating access to funding and business management training) is provided to businesses located in Cape Town and Mossel Bay. This support includes business development and funding in holistic packages that are tailored to the specific needs of the various ESD beneficiaries. A total of R8 million was invested in the 2013/14 financial year. (See here the profile of these companies)

Participation of local suppliers in 2013 shutdown

One of the key projects undertaken by PetroSA every three years is the Shutdown of the refinery for statutory maintenance, which traditionally involved large companies. To encourage local participation, in 2013/14, PetroSA successfully managed to award seven contracts to local suppliers as part of the 2013 shutdown of our GTL refinery in Mossel Bay.

On-going supplier development work

As part of the revised ESD programme, four Supplier Development Companies (SDCs) in Mossel Bay continue to receive business development support from PetroSA with special focus on marketing, market access and skills upgrade. The tenders for the services were issued in January 2014 and all SDCs were subjected to the normal procurement tender process. Two of the tenders have been finalised and contracts were awarded to TJ&H Fire Services and Siyakhona Scaffolding for a period of 36 months

Skills Upgrade Programme (SUP)

The Skills Upgrade Programme (SUP) for the four Supplier Development Companies with accredited service providers has been initiated. The aim is to impart technical skills and expertise to ESD beneficiaries with major emphasis on improving supervision, safety and quality with some of the focus areas being scaffolding, inspection and supervision, certificate of competence, coating applications, rope access training, advanced welding inspection, and SAWI and NOSA first-aid (safety). 240 people have already been successfully trained as part of this initiative.

Women ESD Initiative

Women Petroleum
To ensure that disabled women are also empowered, together with the Department of Energy (DOE), we now work with women from Deaf Women in Economic Emancipation Programme (DWEEP). This includes hosting them at our Gas-to Liquids Plant in Mossel Bay and sharing related information on business opportunities available. The aim is to encourage and promote inclusivity in the oil and gas value chain. The strategic objective on this intervention is for PetroSA to also have sustainable and progressive economic programmes that would empower deaf women and to encourage and promote inclusivity in communities.

Business Opportunities for Women
Through our B-BBEE department, we continue to participate in a series of conferences hosted by the Department of Energy (DoE) together with Women in Oil and Energy South Africa (WOESA) in different provinces of SA. Our role is to continue to inform business-minded women and entrepreneurs about opportunities available in the energy sector.

Women In Construction
As part of the Skills Upgrade Programme (SUP), we also work with women owning construction companies in Cape Town and Mossel Bay. The main objective is to ensure that the companies are fully equipped with necessary skills to be able to compete for work and execute projects related to construction industry. An overwhelming positive feedback continues to be received from all participants mainly around the contentment and the professionalism in which training is facilitated. The intention is that these companies can stand a chance to participate in future business opportunities made available.

Facilitating Access to Market

Annual Enterprise Development Expo: Suppliers received ESD support to attend the Western Cape Annual Exhibition hosted by Smart Procurement World, in collaboration with Absa Enterprise Development at the Cape Town International Convention Centre on 7 March 2014. The forum presented them with the opportunity to market their goods and services, while networking with other key industry local clients.

Localisation: The B-BBEE Department, as part of ESD support, facilitated a meeting between PetroSA Procurement Department and a 100% Black-owned painting and coatings manufacturer. This initiative is one among the many to come which aims to promote and encourage local manufacturers to do business with PetroSA and increase local content.

Progress through Strategic Partnerships: During the period under review, PetroSA signed a memorandum of understanding with Standard Bank of South Africa to facilitate access to funding by our ESD suppliers. Funds were committed for non-financial support initiatives while other financial support avenues are being pursued.